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HomeMy WebLinkAbout2017-04-05 RMLD Citizens Advisory Board MinutesOry OFR '.. N Town of Reading Meeting Minutes RECEIVED ",�,� �€�� TOWN CLERK ClKoaPr� REt"ONC, MASS. Board - Committee - commission - Council: Z01I '11I5 2 3 P 5; 081 RMLD Citizens Advisory Board Date: 2017-04-05 Time: 6:30 PM Building: Wilmington High School Location: 1-062 Large Group Instruction Room Address: 159 Church Street, Wilmington MA Session: Open Session Version: Final Purpose: General Business Attendees: Members - Present: Mr. George Hooper, Chair (Wilmington); Mr. Dennis Kelley, Secretary (Wilmington); Mr. Neil Cohen (Reading); Mr. Jason Small (North Reading) Members - Not Present: Others Present: Mr. John Stempeck, Board of Commissioners Ms. Coleen O'Brien, Ms. Joyce Mulvaney, Ms. Jane Pareneteau, Ms. Kathleen Rybak �'// Minutes Respectfully Submitted By: Mr. Dennis Kelley, Secretary Topics of Discussion: Call Meeting to Order - G. Hooper, Chair Chair Hooper called the meeting of the Citizens' Advisory Board to order at 6:30 PM and noted that the meeting was being audio recorded. 2. FY18 Capital Budget - C. O'Brien, General Manager Materials: FY18 Capital Budget dated March 31, 2017; Revised Planned Programs (pages 9-11) Capital Improvements FY17 thru FY22 Ms. O'Brien noted that RMLD has transitioned the telephone system to VoIP (voice over internet protocol), which has impacted the functioning of one of our published telephone numbers. The IT department is working to resolve this issue. Ms. O'Brien began review of the FY18 Capital Budget with the System Profile (page 6- 7). Ms. O'Brien noted that RMLD has begun roll-out of SpryPoint Mobile software with tablets being utilized in the trouble trucks. This will allow us to automate crew work to integrate with GIS and other systems. This software will be piloted over the next month and will serve as a transition to implementing a work order system. The current Cogsdale billing/financial package has a work order component option. Ms. O'Brien then began review of the Capital Projects as outlined on the revised "Planned Programs" spreadsheet which was distributed at the meeting. Ms. O'Brien gave a brief overview of the facilities projects, noting that the Master Site Facilities Plan remains on hold pending Reading Economic Development plans. Therefore, we are limiting major property improvement projects. CAB members questioned the cost of the thermal power washer system replacement noting that it seemed pricey. Chair Hooper asked if there was a water collection system at 230 Ash Street. Ms. O'Brien stated that she believes there's an oil/water separator in the drain system. Ms. O'Brien Page 1 1 agreed to follow-up with the Facilities Manager on the estimates and the status of the water/drainage system. Ms. O'Brien continued review of the Facilities projects. Chair Hooper questioned the pricing for the roof project. Ms. O'Brien noted that the entire roof was not being replaced, but a portion of the roof including the membrane would be replaced. Ms. O'Brien concluded Facilities projects with a review of Rolling Stock Replacement, which is in line with the master plan for vehicle replacement. O'Brien noted that RMLD has applied for a grant to purchase electric vehicle charging stations, which will be located at 230 Ash Street. The charging stations will accommodate a planned purchase of an electric vehicle for RMLD use. Ms. O'Brien moved on to review the Integrated Resources projects, including the Electric Vehicle Supply Equipment. Necessary repairs to the parking lot at Ash Street, which currently has flooding issues, has increased the budget on this project. The distributed gas generator (DG) in North Reading is $2.504m and is still on target for this year's peak. Ms. O'Brien noted funding for any future DG units has been taken out of the six-year plan pending analysis of the impact of the North Reading unit on the peak reduction. IT projects include the annual allotment for necessary hardware and software upgrades. Ms. O'Brien then provided a brief review of the System projects. The GIS project should be completed early in FY18. Grid Modernization and Optimization will be completed in phases, therefore, funding for FY20-22 (Phase II) has been removed from the six-year plan for now (as reflected in the revised "Planned Projects" spreadsheet distributed). We want to be able to put in certain equipment and then measure the efficiency we are getting - where is the line between spending and how "smart" you want it to be. We will work in phases so that we make sure that the technology and the software continues to communicate; that everything remains open architecture. Ms. O'Brien noted that the cost sheet (page 42) represents Phase 1 (FY15-19). Mr. Small shared some of his experiences with smart grid technology. Ms. O'Brien continued review of the planned system projects. The New Wilmington Substation is the only project scheduled to go to bonding. The $650k planned for FY18 is land and any legal expenses. Building the substation is planned for FY19, finishing it up in FY20. Staff has met with representatives from the bonding company to review the process. Mr. Small asked about discussions with National Grid and noted that he believes the process for tapping the line may sometimes require a lengthy permitting process. The group discussed some of the challenges of identifying suitable land and possible alternatives if land cannot be identified, such as using the site at Station 5 if necessary and the challenges that site would present. Mr. Small asked (regarding the 4W9 Getaway at Station 4) if there was any thought to going to a 1m instead of 750. The group discussed 750 versus 1m. Ms. O'Brien agreed to follow-up with Mr. Jaffari on this item. After completing review of the various System projects, Ms. O'Brien moved to Page 3 of the revised Capital Improvements spreadsheet and reviewed the six-year plan, which includes a snapshot of the depreciation funds and the transfers of operating funds. In FY18, we have included an extra million dollars in the transfer from operating funds. The Ending Balance for FY18 ($600k) is less than we like to see ($lm) and then it starts to climb up (FY19-22). If we are not able to build a substation and can hit the maintenance hard, its possible that we won't have to bond. We are watching the depreciation; it climbs back up as the maintenance starts to get more cyclic. Ms. O'Brien noted that RMLD has done a good job addressing the magnitude and volume of necessary maintenance without having to go to bond so far. Page 1 2 Ms. O'Brien then opened the discussion for questions. Mr. Kelley asked if there were any rebates or grants available for the LED lights being installed at the RMLD buildings. Ms. Parenteau responded that Integrated Resources looks at grants all the time. The State is coming out with a $10m pool of money and RMLD is planning on submitting (due June 1) for 3-4 projects. As mentioned earlier, there are grants that are available for electric vehicles for municipalities, and we'll be applying for that. However, there are no specific grants RMLD (as a utility) could utilize for the LED upgrade at RMLD facilities. Mr. Kelley asked if RMLD has considered having an electrician on staff to off -set some of the contract expense. Ms. O'Brien noted that the current staff is not licensed. If they were to retire, that would certainly be a target certification that RMLD would look for. Chair Hooper asked how may vacancies are still open. Ms. O'Brien responded that there are potentially up to fifteen vacancies still being evaluated with several postings up. There has been a lot of headway with new hires (two accountants, a communications manager). Vacancies include two engineering positions, linemen positions, and an IT position. Ms. O'Brien noted that Leidos has not done their second phase evaluation of the Line group to determine if succession configuration changes are necessary. Ms. Parenteau reported that the Operating Budget has been submitted to PLM for the cost of service study. There were some discussions at the Board meeting about the potential of restructuring or introducing a couple of different rate designs. Mr. Mayhew Seavey from PLM will be at the CAB meeting on the 12th, with preliminary information to share and to get CAB feedback. We will then present to the Board (in early May), and early in June finalize a rate proposal for the CAB. The rates will be contingent upon meeting the revenue requirements of the Operating Budget. Ms. O'Brien noted that we want to be clear on what any new rate designs are going to accomplish - the cause and effect on the various rates. Sometimes with rate designs, the subsidizations can become magnified. We have to look at that impact on commercial customers and their businesses. Ms. Parenteau added that PLM will revisit the solar net metering rate. We are also looking at potentially exploring how we allocate the purchase power and capacity/transmission (PPCT) charges. As has been discussed, its a demand -oriented rate, based on our highest peak. Yet, when we recover those costs through our rate base, it's on cents per kilowatt hour. RMLD is considering implementation of a demand component associated with PPCT charges. We cannot do that on the residential customers because we don't have demand meters, but we could potentially look at that in the commercial and industrial class. We would like to show that and get feedback because ultimately the Board sets rates. CAB feedback will be imperative to relay that to the Board. Ms. O'Brien noted that Mr. Seavey will also discuss off the grid scenarios as we move forward with solar alternatives. What does the utility recover as far as stranded costs or stand-by power to have power in place if it is needed; RMLD cannot compromise on the safety or maintenance - it still must be safe for the public, the worker, and the assets of the RMLD. We want a discussion that goes forward so that customers understand that they are not completely off the grid and what that means so that they have an opportunity to roll that into their calculations when they are looking at solar. Mr. Kelley asked about the Ballardvale Street solar facility. Ms. Parenteau reported that we are still waiting for the FDIC in Washington to sign off on the project. The developer is optimistic that it should be coming within the next week or two. Mr. Kelley asked if the Burlington Avenue project was running, and if it was meeting performance projections. Ms. Parenteau responded that it was. The capacity factor on solar (in New England) is around 12-15%. Burlington Avenue has been up since the fall of 2015. Ms. Parenteau noted that the facility has had some vandalism, and there is now a dispute between the developer and the landlord to determine who is responsible. Page 1 3 3. Public Comment - G. Hooper, Chair As there was not public present, Chair Hooper moved to Agenda Item 4. 4. Next Meeting - G. Hooper, Chair The next CAB meeting is scheduled for April 12th, at RMLD in Reading. S. Adjournment - G. Hooper, Chair Mr. Small made a motion to adjourn the Citizens' Advisory Board meeting, seconded by Mr. Kelley. Hearing no further discussion, Motion carried 4:0:0 (4 in favor, 0 opposed, 0 absent). The Citizens' Advisory Board Meeting adjourned at 8:03 PM. As approved on August 16, 2017. 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